The High Court in Lilongwe has dismissed an application by Luthando Holdings Limited that sought to challenge the Director of Public Prosecutions (DPP)’s decision to discontinue criminal proceedings against Paramount Holdings Limited and its directors.
On Friday, June 27, 2025, Directors Prakash Virji Ghedia, Arvindkumar Atit Patel, and Suresh Khimji Jagatiya were cleared of three charges, including conspiracy to commit a felony and allegedly using forged documents to win a government-linked motorcycle supply tender. Paramount Holdings was also acquitted of all wrongdoing.
Luthando Holdings owner Hedrix Laner through lawyer Innocent Zimba and others sought Court review against DPP decision to discharge Paramount Holdings and Directors on case number 37 of 2025.
However, High Court Judge Msika dismissed the review application, stating that the accused had already been lawfully acquitted by a lower court of all criminal charges. He further ruled that there were no valid grounds for the DPP to revive the case, as outlined in the judgment delivered on Friday, June 27, 2025.
Judiciary Spokesperson, Frank Namangala on Tuesday evening, confirmed the court decision supporting DPP’s acquittal on Paramount Holdings and its Directors.
“The case was discontinued back in 2024, and recently, the court has agreed with the DPP’s position to consider the matter as discontinued,” said Namangale. “Further, the accused persons in the case are deemed to have been properly acquitted.”
Meanwhile, it is reported that Laher has launched a social media attack on DPP Chamkakala as to why the case was dropped against Paramount Holdings directors.
The legal battle began in 2021 following a complaint by Hendrix Laher, director of Luthando Holdings Limited, a business competitor. Laher had alleged that Paramount used a fake Yamaha dealership certificate to win a tender from JHPIEGO, an international NGO, in 2020.
Both companies had submitted bids to supply Yamaha motorcycles to public institutions, including the Ministry of Education, the Ministry of Health, the Ministry of Local Government, Kamuzu University of Health Sciences, and the tender was awarded to Paramount on July 7, 2020.
The case began to fall apart when the complainant failed to appear in court on multiple occasions. With no credible evidence provided, the Director of Public Prosecutions (DPP), initially under Dr. Steven Kayuni and later under Masauko Edwin Chamkakala, discontinued the case through a certificate issued on March 19, 2024.
After the six-month statutory waiting period, the court formally acquitted the accused and blocked any future prosecutions on the same matter.
The ruling provides Paramount Holdings with full legal clearance, ensuring its continued eligibility for public and donor-funded tenders. In 2022, Yamaha Motor Corporation Japan confirmed Paramount as its sole authorised distributor in Malawi.
